Jarislowsky says such a big move, announced on April 5, runs counter to responsible management, as the engineering and construction firm's 407 assets comprise about four-fifths of the company's market valuation of $5.86 billion.
He says the investment compares to a government bond and promises higher profits as Toronto-area road traffic increases. The deal will see the OMERS pension plan buy a 10.01 per cent stake in 407 International Inc., reducing SNC-Lavalin's interest to 6.76 per cent. SNC-Lavalin plans to use the proceeds from the 407 deal to bolster its balance sheet and help pay down a $1.5-billion loan from the Caisse, Quebec's pension fund manager. The scandal-plagued company previously paid off $500 million of the 2017 loan, and aims to pay another $600 million upon closing.
Jarislowsky's comments, posted in a personal note on the website of the Canadian Foundation for Advancement of Investor Rights, also take aim at former attorney general Jody Wilson-Raybould for refusing to overturn prosecutors' decision to prosecute the company on fraud and corruption charges.
Our own public pensions are gouging us out, causing hundreds in millions in lost productivity from 401 congestion every single month. Think about it. onpoli